RCM on Professional Fee (Internal Audit/Others)

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This query is : Resolved

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This discussion clarifies the applicability of the GST Reverse Charge Mechanism (RCM) for professional fees, specifically concerning internal audit services. Generally, RCM is not applicable for services provided by a Chartered Accountant or similar professionals. However, RCM does apply if the service provider is an advocate.

Ritu Bangari

Ritu Bangari (Querist)
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29 May 2021 Hi,

Greetings!

One of our Auditor has issued us invoice of Internal Audit but he is unregistered under GST.

Should we have to pay the GST under Reverse Charges.

Thanks & Regards,
Ritu Bangari

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 May 2021 Reverse charge not applicable in this case.

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CA Dhruva Kalamanji

CA Dhruva Kalamanji (Expert)
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29 May 2021 Hi Ritu,

In this case it is not applicable

Assuming you are procuring audit service from a CA or any other professional.

If it happens that you auditor by any chance a lawyer then RCM is applicable.

Should you have any further query kindly write me at sthayin@gmail.com

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